On the basis of improved/discounted earnings and cash flow growth, the stock will have to trade at its rightful fair market value of around $70.

The infamous London Whale trade, which saw the bank lose more than $6 billion due to complicated maneuvers, is one of many recent examples. That the bank was also tied to Bernie Madoff was another embarrassment -- one that forced it to pay $1.7 billion to settle accusations that it facilitated Madoff's Ponzi scheme by ignoring the warning signs.

The stock closed Friday at $55.80, up less than half of 1%. Shares are down 2.6% on the year to date, trailing bothWells Fargo (WFC) and the banking sector, which are up 15% and 5.4% year to date.

And with recent concerns about CEO Jamie Dimon, who disclosed he has "curable throat cancer," investors are taking a wait-and-see attitude with both Dimon's and the bank's near-term recovery plans. But all of this combined makes JPMorgan one of the best investments on the market today.

From Friday's close of $55.80, the stock is trading at just 8.5 times 2015 estimates, almost 6 points lower than the industry average of 13.88. This is also 11 points below the S&P 500's peer category P/E of 19. This tells me that JPMorgan shares, which are being discounted due to its legal and regulatory exposure, should head toward $70 in the next 12 to 18 months.